Europe cruises see less demand due to air fares

The high cost of air travel from the US may impact demand for cruises in Europe. A new report by Wells Fargo Securities says that clients may decide to switch to cruises in the Caribbean or in Alaska as the cost of reaching Europe is currently too expensive for many. Bookings for cruises closer to the US remain strong, while fuel is “an increasing headwind to earnings,” according to the report. Caribbean cruise bookings are the strongest. Meanwhile, many passengers are booking closer to the departure time, while “Carnival Cruise Lines appears to be outperforming Royal Caribbean International in pricing over the last six weeks.”Travel Weekly[pictured: Celebrity Cruises, RCCL]